The post Can State Street make up ground in the crypto ETF arena? appeared on BitcoinEthereumNews.com.

ETF powerhouse State Street Global Advisors is finally entering the crypto ETF arena as it looks to make up ground in the sector by offering differentiated products. While SSGA certainly has the brand recognition to compete with rivals, investor appetite for the type of funds it plans to offer remains to be seen.  The $4 trillion-plus asset manager said last week it would be linking up with crypto-focused Galaxy Digital to launch “the next generation of digital asset-based strategies.”  Read more: On the Margin Newsletter: Crypto ETF filings are only ramping up An initial proposed SPDR Galaxy Digital Asset Ecosystem ETF, for example, would invest in crypto equities and futures contracts, as well as in ETFs that hold spot crypto or futures.  Neena Mishra, director of ETF research for Zacks Investment Research, said it’s difficult to predict the demand for such a fund given recent trends.  “This year, investors totally ignored crypto-related ETFs despite their excellent performance, while piling into spot bitcoin ETFs,” she told Blockworks. “This makes sense, as they had been waiting for pure crypto exposure via ETFs for many years.” Indeed, the US spot bitcoin ETFs that began trading in January have so far tallied net inflows of roughly $14.5 billion, Farside Investors data shows.  Meanwhile, the Amplify Transformational Data Sharing ETF — among the first and largest ETF holding blockchain- and crypto-adjacent equities — has seen nearly $600 million of outflows year to date.  Still BLOK, which launched in 2018, manages about $700 million in assets.  “The proposed [SSGA] fund is actively managed and will adjust its exposure based on macroeconomic conditions; I expect it to be very competitively priced,” Mishra said. “If the product impresses investors with its performance and limits volatility, I won’t be surprised to see the State Street product catching up with…

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Filed under: News - @ July 1, 2024 2:16 pm